2021 Money Goals: 10 Ways to Evaluate Your Financial Situation & Set Goals to Get Back on Track by United Capital Management of Kansas
Let's get financially fit! Now that 2020 is safely in the rearview mirror, many people are focusing on New Year's resolutions and getting physically fit. But let's talk about getting financially fit as well.
The last year was challenging in many ways and finances may have been stretched to the limit. A new year gives us the opportunity to re-start and make changes for the better. We can evaluate our current situation and set goals to get back on track!
- First, identify where your money is going. Small purchases can add up and tracking all spending for at least a month can give you an idea of how much to allocate for a monthly budget. If writing down all purchases seems too tedious keep all your receipts and total them at the end of the month.
- Start an emergency fund. Life happens, and most of the time emergencies happen at the most inopportune times. Start saving a little each month into a savings account that will only be used for emergencies. A good goal is to have at least 3 to 6 months of living expenses in your account.
- Pay down high interest debt and make it a priority to pay more than the monthly payment. Call your credit card company and see if a lower interest rate is available.
- Don't buy an item if you can't purchase it with cash. That shopping trip where you found the perfect outfit and shoes on sale will cost you much more if you pay interest on the balance for the next three months.
- Review your automatic expenses annually. Check around for the best rates available on homeowner's and vehicle insurance.
- Check your credit report at least annually. Incorrect information in your report can affect you adversely for not only interest rates but even potential employment opportunities.
- Check your mortgage interest rate. Rates are at attractive levels and you may be able to reduce your monthly payment or the number of years of your mortgage if you refinance at a lower rate. Be sure to consider any fees or expenses when making the decision to refinance.
- Involve the entire family. Make it a challenge to save up for something together that will be bought with cash, not credit. Celebrate when a goal is met!
- Use the buddy system. Challenge a friend to get financially fit with you. It's easier to reach a goal when you have a support system and accountability.
- After you have paid off debts start to "pay yourself." A qualified financial advisor can help you get started with investing and saving for your future goals.
Small changes can make a big impact in your financial fitness. As with physical fitness the results will not be overnight, but you will start to see gradual improvement over time. Keep working hard and make this your year to get financially fit.
As always, consult a trusted advisor about specific recommendations based on your individual circumstances. A financial professional can help mitigate risk in your portfolio and identify strong opportunities.
This article was authored by Shannon Benish. Shannon is securities licensed in the states of Kansas and Maryland. She is IAR registered in the state of Kansas.
The content on 30Seconds.com is for informational and entertainment purposes only, and should not be considered financial advice. The opinions or views expressed on 30Seconds.com do not necessarily represent those of 30Seconds or any of its employees, corporate partners or affiliates.
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